stock control

Question 1

what is stock?

Answer 1

raw material needed for a product

Question 2

how/why do businesses try to “control” their stock?

Answer 2

so that they have enough stock to meet immediate needs, but also not tying up finacial resources in stock,

Question 3

what is the role of stock control?

Answer 3

ensure a supply of raw materials for production
ensure there is enough finished goods to meet D
control cash tied up in stock
control wastage and theft. q

Question 4

what is the problem of too much stock?

Answer 4

wastage 
storage 
lighting and electricity 
space of opportunity 
fall in demand - cost of too much stock

Question 5

what is the problem of holding too little stock ?

Answer 5

if you can’t meet demand you may loose customers
not utilising facilities
not being able to cope with the level of demand
ordering in small quantities = no purchasing EOS

Question 6

what is “buffer stock” ?

Answer 6

an “emergency” stock is the difference between the minimum stock level and no stock

Question 7

what is lead time?

Answer 7

the amount of time taken from reordering the stock and it arrival.